Rs12trn tax collection target likely

ISLAMABAD: The government is likely to fix over and above Rs12 trillion tax collection target of the Federal Board of Revenue (FBR) for 2024-25 as compared to Rs9.4 trillion for 2023-24, reflecting a massive increase of over Rs2.6 trillion.

Sources told Business Recorder that the revenue measures to the tune of Rs1,500 billion to 2,000 billion are expected to be announced today (Wednesday).

Finance Bill 2024 to be revealed on Wednesday (June 12) is expected to further raise regulatory duties and other duties on the import of non-essential/luxury items and finished products.

The withholding tax rates including imports, contracts, services and supplies are likely to be increased in budget (2024-25). In the case of non-filers, the withholding tax rates would be increased on different financial transactions of un-registered persons.

The government may increase advance income tax on the import of raw materials by commercial importers by one percent.

Jul-Dec tax collection: FBR surpasses target

The FBR has proposed 2.5 percent tax on the entire business supply chain, from manufacturers to retailers. The income tax slabs for the salaried class is expected to be revised under the new Finance Bill, sources said.

One of the revenue measures proposed is to raise advance tax on the purchase of immovable properties. The FBR has imposed three percent tax on filers and 10.5 percent tax on non-filers during the current fiscal year, and it collected nearly Rs80 billion during this year.

Sources said that a three percent tax has been proposed on filers and six to seven percent tax on non-filers for the purchase of property upto Rs50 million.

Similarly, four percent tax on filers and 12 percent tax on non-filers have also been proposed for the purchase of property worth Rs50 million to Rs100 million.

Furthermore, five percent tax on filers and 15 percent tax on non-filers have been proposed for the purchase of property worth over Rs100 million.

The government is all set to impose federal excise duty (FED) on nicotine pouches and e-cigarettes. At present, there is no FED on nicotine pouches.

The measure is estimated to generate revenue to the tune of billions. The FBR has proposed a standard rate of 18 percent sales tax on a number of zero-rated items and exempted goods including dairy and stationery items in the budget (2024-25).

Copyright Business Recorder, 2024